Whatever reason for wanting to
quit your job may be, you need some careful planning that will help you
financially and mentally to leave that employment and make the process less
stressful. Being reckless could be your big mistake, you should develop a list
of pros and cons of quitting your job. If
leaving your employment is still your decision; to help you get ready before
your freedom day, here are some important things that you need to realize
before quitting your job and starting your own company.
1. Do your homework
Leaving your
employment is not generally something you should do precipitately or in the
heat of the moment when you are frustrated. Since your interest is launching an
own company, a good plan is very crucial.
The best way for you to smoothen your transition period is to grow your
business while you are still employed. It is indispensable to learn everything
about your product or service, know your audience and buyers, know your
competitors, and most of all know whether you really have something unique to
offer the industry. Figure how this knowledge will fit into your financial
outlook and your overall life and business plan. Doing your research, getting
your finances in order, and setting target dates can help you answer those
questions so that you can start moving forward.
2. Develop a business plan.
Once you have
completed your home work, it is time to put everything in writing. Developing a
business plan can be the key to your success. A business plan will help you
work out the goals you want to achieve, and the strategies to achieve them.
This means you can focus your resources and energy on what you need to do,
rather than spreading yourself too thin. You can use a plan to establish the
right steps to starting a new business, including what you need to do, what
resources will be required, and what you expect to happen. Also a business plan
can be used to back up a business loan application. Investors, lenders and the
likes want to see the plan; and are expecting the plan to cover the main points
which includes an overview, executive summary, company description, objectives,
vision and mission statement, information about the market and industry, the
strategy, the management, a marketing plan, an operational plan, financial plan
and an appendix.
3. Establish a Financial Plan
Your personal
finances need to be just right before you allow your main line of sustainable
income to disappear, therefore it is a good idea to develop a budget to
determine how long you can survive on your own. Before looking at funding for
your company, you need to have your own personal finances in check. You need to
asses exactly the amount of money you need to continue with your current lifestyle,
the amount of money at your disposal, and the backup options you have in case
you run out of money. In addition to
planning your personal finances, you will need to have a financial plan for
your startup capital which includes investor(s), personal savings, loan and
grants or award. All weather, you need to plan in advance because if you cannot
afford getting the capital, your company will not takeoff.
4. Legal Consideration
You have to
consider the legal point of view of your business. For example, are there legal
considerations like permits or licenses? One of the main points is about
business structure, because it will dictate the process of registration for
permits or licenses and tax purpose. You need to have the structure for your
startup in place, specifically your legal structure. There are various types of
businesses entities you can establish, these include; sole proprietorship, a
corporation, a limited liability company, and a partnership company.
5. Assemble Your Team.
Before launching your business,
consider whether you will need a mentor, partners and/or employees. The idea of
business might be yours and attractive, but you may find yourself in a
situation where you some degree of help to start and run your new venture. Seek
out and reconnect with individuals in your network who can help with your
transition and provide valuable insights as you create and grow your new
business. You have to reach all of your co-workers, managers, suppliers, and
customers. Since you will be starting a new business, it is not a bad idea to
let people know how they can support you in your new venture. Normally, you don’t have to spend money if
you can avoid it; you need to look at the resources that are currently available
to you.
7. Be focused
As a business
person you have to stay focused on your plan. No matter how the details small
are, if you do not focus on the small details, you will not be able to form the
ideal business. Planning is the key, and little things such as choosing the
right social media channels or filling your taxes returns are vital to your
success.
6. Choose a Business Place.
It is not necessarily an office
from which to run your business; however, it is important to stay organized as
a business person. You can start by working from home until your business takes
off in the short term, while looking for the best option for the long run.
Regardless of the place, whether at home or somewhere else; make sure
everything about your business is well documented and organized.
7. Compose and improve your portfolio or
resume.
Why do you
need resume? Because an in-depth and polished resume is vital for convincing
your potential clients, team and investors that you possess the talent,
knowledge, skills and expertise to be successful. Though you are planning to be
your own boss, it is a good idea to have an updated resume.
8. Provide Your Notice as per Contract
When
everything is in place and you are ready to launch your business, it is time to
quit your job and start your own business. Usually people say don’t burn the
bridges, quitting without resignation notice period, gossiping across the
office, not completing your final assignments etc could be the worst decision
of your life. You cannot be sure that it will be of a success or that your old
company won't come in handy one day; it is better to keep doing your best so
that your former employer can be a reference, refer you to prospective
investors or customers, and it leaves the door open if your company folds and
you have to come back.
Do you still want to resign?
Starting a new business can be
more challenging than you initially thought. Take your time to conduct
research, reviewing your finances, and start building your brand so that you
smoothen your business transition period for success. Despite the hardships
involved, freelancing may offers you a number of great paybacks. With these
tips, you can make your business the best and most profitable adventure.
